How to Pay Yourself First Then Bills

Anybody who is wealthy will tell you that certain steps need to be in place as you walk along your financial journey. The most important step of all is knowing how to pay yourself first then bills. Everybody who works will receive a paycheck and the first thing that people should do is pay themselves first. Only use cash or your debit card when making purchases.

Ways to pay yourself first:

1. Have your employer put 10-15% of your check into your 401K or Roth IRA before you ever receive a check or before the money is deposited into your checking account. If your company matches what you contribute to a 401K then put whatever percentage they match into that account and put the rest into a Roth IRA account so that your money grows tax free. For example if your company matches up to 7% then put the remaining 8% into a Roth IRA (individual retirement account).
2. Pay off your car so you no longer have to make payments. I don’t have figures but everyone will know that car payments usually run Small Cars: $305-375, Midsize cars $400-475, Large cars/SUV’s $500 and up. This is how much people can pay themselves first every month when they don’t have any car payments.
3. Do a budget on food. We spend so much money on food its ridiculous. The average person in America spends $6-$8 on lunch every day, and thats on the low end. If you were to start packing lunch and taking it to work it will cost you $3-$4 day, a savings of $3-$4, you will cut your food budget in half not even counting dinner yet which is more expensive.
4. Save money. Open a savings account online with your bank and start doing online banking. Every time you save money on food or clothing, but what you would have spent into your saving account by doing an instant transfer from your checking to your savings. If your checking gets higher than what you usually spend, lets say $1,500, transfer the extra money into your savings account and do not transfer it back to your checking account. This method will help you build cash fast.

The idea is to put more money in your pocket by paying yourself first then bills. So start paying yourself first and others second, thats how Millionaires become wealthy. And then of course, work your way to becoming debt free so that you keep your paychecks instead of having to owe people money before you even get paid.